Probe Finds Byju’s Failed Investors But Didn’t Commit Fraud (1)

An India government investigation found lapses in the corporate governance of Byju’s, but cleared the struggling online-education startup of financial fraud.

The yearlong probe by the Ministry of Corporate Affairs found no evidence of wrongdoing such as siphoning of funds or manipulation of financial accounts, people familiar with the matter said. Still, it discovered governance shortcomings that contributed to the startup’s mounting losses, the people said, asking not to be named as the investigators’ report isn’t public yet.

The findings offer some support for once-celebrated founder Byju Raveendran, who’s been accused of mismanagement by disgruntled investors. Three shareholders ...